Business Aviation curates the latest industry information from a panel of trusted experts, examines the wide range of business and private aircraft, describes the latest technologies and highlights affordable access options that open the skies to businesses of all sizes. Under the leadership of industry expert Tony Velocci, Business Aviation provides top executives and highly mobile business and leisure travelers with accurate, in-depth information on business aircraft benefits, fractional share ownership, jet cards, charter opportunities and more in order to meet today’s productivity challenges and create tomorrow’s opportunities.

Forbes BrandVoice™ allows marketers to
connect directly with the Forbes audience by enabling them to create
content – and participate in the conversation – on the Forbes digital publishing
platform. Each BrandVoice™ is produced
by the marketer.
More on BrandVoice™ here
, or email us directly at
brandvoice@forbes.com.

No Apologies -- "Luxury Jet" Is Not A Dirty Term

I noticed where the IRS recently clamped down further on the tax treatment of certain executive perks related to business jet flights. Aviation International News covered the situation pretty clearly in: IRS Clamps Down on Bizav Perks.

In response, the NBAA is holding a Tax, Regulatory and Risk Management Conference in Orlando on Oct. 28 and 29 to provide detailed strategies for implementing the IRS’ final rules and at the same time minimizing deduction disallowances for business jet operators. This all stems from the American Jobs Creation Act of 2004 signed into law by President George W. Bush.

Luxury Tax Was a Bad Idea

Unfortunately it follows a regrettable trend. In the early 1990s, U.S. politicians tried to impose a 10 percent so-called “luxury tax” on private aircraft not specifically tied to a direct business purpose. President George H.W. Bush signed it into law, and the IRS struggled with how to enforce it. When it really didn’t raise revenue, Congress passed laws abolishing the tax a number of times during Bush 1′s tenure. President Bill Clinton finally signed its repeal.

My overriding takeaway from these instances is that our American politicians just don’t get it. Congress passes crazy laws, and Presidents sign them.

And if the country that has traditionally led the world in business jet manufacturing doesn’t get it, other countries will inevitably follow our lamentable lead. As an example today, the Italians keep considering ways to impose hurtful taxes on visiting business jets.

Why Do Americans Think Like This?

The thinking that leads to this kind of tax treatment for a bone fide capitalist tool like business flying is perplexing. But perhaps the American notion that wealth and success is something to be ashamed of or embarrassed by – maybe our populist streak – is the underlying fault.

The truth is that arriving by private airplane for a business meeting is the ultimate imprimatur. I am pretty sure in my days running the Beech real estate department that I made a few deals I wouldn’t have otherwise made just because I arrived via King Air.

Asians Get It

The Asians seem to get it. When I write for Singapore’s Jetgalamagazine, distributed throughout Asia, its publisher and readers embrace, actually relish, the idea of luxury, elegance and good taste in their articles about personal jets. But American aviation publications eschew those concepts and instead focus nearly entirely on portraying private jets in business terms – talking about business tools, investment, and the value of time. That’s all true, but there is also something to the personal perquisites of private flying.

Multimillion-dollar jets perform the business of commerce more efficiently than other forms of transportation for their owners – and the ride is pretty nice. We shouldn’t be apologetic about it. It’s a fact. Maybe it is time to recognize that some business jets are pretty elegant and that’s okay.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.